In a logistics system, transportation should be optimized at the expense of related logistics activities, such as inventory management, and procurement.

Question

BlackTom AI · Accepted Answer

The question presents a claim about how transportation should be prioritized within a logistics system, specifically suggesting that transportation optimization should come at the expense of related activities like inventory management and procurement.
Option 1: 'True' — Interpreting this as an assertion that it is appropriate to optimize transportation even if it harms or ignores inventory management and procurement, this view contradicts the integrated nature of logistics. In practice, optimization in one area often affects others (e.g., faster transportation may reduce inventory levels, but it can also increase procurement costs or disrupt supplier schedules). A holistic approach seeks to balance trade-offs across functions rather than sacrificing one for another.
Option 2: 'False' — This statement contends that prioritizing transportation at the expense of other logistics activities is not appropriate. The reasoning here is that effective logistics requires coordination among transportation, inventory, and procurement. Ignoring the interdependencies can lead to higher total costs, stockouts, longer lead times, and suboptimal service levels. A systems view aims to optimize the overall performance measure (such as total cost or service level) by considering how changes in transportation impact inventory levels, order quantities, supplier reliability, and procurement strategies.
In assessing these possibilities, the core idea is that logistics success hinges on integrated optimization rather than unilateral focus on one activity. Understanding the mutual influence among transportation, inventory management, and procurement explains why the claim that transportation should be optimized at the expense of the others is not aligned with best practices in logistics management.

BUSML 3380 AU2025 (2040) Midterm Practice Problems

In a logistics system, transportation should be optimized at the expense of related logistics activities, such as inventory management, and procurement.

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